More than 40 energy supply chain companies have expressed “grave concern” about government plans to hike windfall taxes and eliminate investment.

In an open letter to HM Treasury, the companies have warned that the plans threaten £200billion of investment in all forms of domestic energy, including renewables.

In the letter, issued by Offshore Energies UK, firms express concern that reduced investment and greater uncertainty would be felt throughout the supply chain “through jobs, and the communities this industry supports, both directly and indirectly.”

They also argue that oil and gas revenues are helping fund investment in renewable energy.

A hostile tax environment would threaten not only the oil and gas industry, but also the firms who invest in renewable energies using cash generated through fossil fuels, the letter suggests.

“The companies investing in nascent opportunities like floating offshore wind and carbon capture and storage will require the cashflow from a stable and predictable oil and gas business to fund these opportunities,” it says.

“Sufficient investment in the UK energy transition can only happen if we support, not undermine our domestic oil and gas sector.”

The signatories include manufacturing, engineering and technology companies.

Last May, Harbour Energy, the UK’s largest oil and gas producer, told staff it would cut 350 UK jobs, blaming the UK government’s windfall tax changes.

A Treasury spokesperson said that it is “strengthening the previous government’s windfall tax to ensure North Sea oil and gas producers contribute their fair share towards our energy transition.”

“Our plans for a new National Wealth Fund and establish Great British Energy will create thousands of new jobs in the industries of the future,” they added.